The Corporation Tax (Financing Costs and Income) Regulations 2009

PART 1 PRELIMINARY PROVISIONS AND INTERPRETATION

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Corporation Tax (Financing Costs and Income) Regulations 2009 and, subject to paragraph (2), shall come into force on 1st January 2010.

(2) Circumstance 4 in regulations 13(2) and 28(2) come into force on 1st April 2010.

(3) These Regulations have effect in relation to periods of account beginning on or after 1st January 2010.

Introduction and structure of Regulations

2.—(1) These Regulations make provision about the treatment for the purposes of corporation tax of certain financing costs and certain financing income of companies that are members of a group.

(2) The structure of these Regulations is as follows—

Part 1 makes provision in relation to general and preliminary matters;

Part 2 makes provision in relation to the disallowance of deductions;

Part 3 makes provision in relation to the exemption of financing income.

Interpretation

3.—(1) For the purposes of these Regulations—

(a) “Schedule 15” means Schedule 15 of the Finance Act 2009 (tax treatment of financing costs and income);

(b) a company is an “immediate parent” of another company if it directly owns more than 50% of the ordinary share capital of that other company;

(c) a company is an “ultimate UK parent” in relation to a group if it—

(i) is a member of the group,

(ii) is a corporate entity,

(iii) is not a subsidiary (whether direct or indirect) of a corporate entity resident in the United Kingdom,

(iv) is not a collective investment scheme, and

(v) is a company to which Part 3 and Part 4 of Schedule 15 apply.

(2) In this regulation, “collective investment scheme” has the meaning given by paragraph 80(2) of Schedule 15.